Trading

Blog

Know All About Trading Stocks, Cryptocurrency, Index CFDs, Forex And More With A True STP Broker... From An Unprecedented Perspective

Open Live Account

FOMC Cheat Sheet

What is the FOMC?

FOMC stands for Federal Open Market Committee, a branch of the Federal Reserve System

Who is on the committee?

- President of the Federal Reserve Bank of New York
- 7 members of the Board of Governors
- 4 Reserve Bank Presidents on a rotating basis

Why do they meet?

The members meet to discuss national and global economic developments and their stance on monetary policies

When are the meetings held?

FOMC meets 8 times per year, every 6 weeks. They can meet more often should the need arises.


Can we spectate the meeting?

FOMC meetings are held in private. However, the minutes will be released 3 weeks after the meetings. You can find them here.

What are their tools?

- Open Market Operations (the buying and selling of securities in the open market by a central bank)
- Adjusting interest rates
- Determining reserve requirements

How can those tools be used?

For expansionary monetary policies

Open Market Operations
Buying more bonds in the open markets

Interest Rate
Lowering the rate when lending money to commercial banks

Reserve Requirements
Decreasing the amount of money that financial institutions have to keep at the reserve                           bank

All of the above actions will lead to more money flowing into the economy and thus stimulate economic activities

(The opposite is true for contractionary monetary policies)

Precautions

FOMC meetings are among the most highly-anticipated events since the financial implications are widespread. Thus, market volatility usually increases around these times.

________________________________________________________________________________________________________________

Want to trade more than 300+ instruments with raw spreads starting from 0 pip and commissions as low as $2 per lot per side?

Sign up with FXPIG now!

search
FXPIG - 'Where Traders Come to Win'
Latest Posts

Prime Intermarket Group Asia Pacific Ltd
Level 2 Transpacific Haus Lini Highway
Port Vila, Republic of Vanuatu

Prime Intermarket Group Asia Pacific Limited, doing business as FXPIG™, holds a Principal's License for dealing in securities, granted by the Minister of Finance and Economic Development of Vanuatu, under the arm of the Vanuatu Financial Services Commission (VFSC Company Number 014578).

FXPIG™ does not open or maintain accounts for Vanuatu based entities or residents or U.S. based entities or residents who are classified as retail or low net worth clients as per the most recent definition of such by the CFTC. Governmental restrictions along with our own internal company policies prohibit FXPIG from opening accounts originating from restricted and/or OFAC sanctioned countries.

Forex Broker FXPIG™ proudly Services Clients from nearly 100 Countries WorldWide, including, but not limited to: Australia, specific provinces, where permissible by law in Canada, Germany, China, Russia, and many more.

Trading in the Forex or CFD Markets is speculative in nature and not appropriate for all investors. Investors in the Forex or CFD Markets should only use risk capital when trading futures, options, and Forex because there is always the risk of substantial loss.

‍ Alchemy Prime Ltd, 13 Leyden Street,London E1 7LE, is the payment agent for FXPIG. Both Alchemy Prime Ltd and FXPIG are part of the same group of companies under common ownership

‍ FXPIG™ is an official sponsor of Signature Rally - a networking supercar travel experience with like-minded people taking part in some of the worlds most modern and rarest Supercars and GT sports cars.

‍ All Rights Reserved ©2011 - 2018, Prime Intermarket Group Asia Pacific Ltd, operating as FXPIG™, the FOREX BROKER 'Where Forex Traders Come to Win,' headquartered at Level 2 Transpacific Haus Lini Highway, Port Vila, Republic of Vanuatu.

FXPIG © 2021 All Rights Reserved.